Sunday, February 28, 2016

Week 8: Economics of digital media

The common theme I noticed in this week’s readings was digital spending/digital revenue/digital ad information sharing, and it left me feeling generally pretty bummed.

The Pew Research article “Industry Breakdown: Newspaper Still Largest Revenue Segment,” included some interesting numbers. I had NO idea print so heavily and decisively outpaced television as the lead money maker. It goes along with what we discussed last week: that despite what I’ve heard for so many years, newspapers aren’t yet gasping for last breaths on their collective deathbed. I read the Newspaper Association of America total revenue numbers twice before they actually registered; $38.6 BILLION for 1,400 U.S. dailies, compared with 16.4 billion for 12 cable news channels and 800 news-producing local TV stations. Wow.

The eye-opening article of the week for me was the one that (formally) introduced me to “native” advertising: “Spending on native advertising is soaring as marketers and digital media publishers realize the benefits.”  I had no idea this was what it was called, although after looking it up, I realized I’ve been aware of it and seeing it for quite some time. And I hate it. It’s trickery and it’s misleading, especially as it appears on the news sites I like to visit. It’s true those companies add (by law, see next paragraph) a qualifier or button to distinguish something as an ad, but on news sites especially, the ads look like they’re legitimate content <at first glance>. I’ve also seen native ads on one of my favorite social media sites, Instagram. These bother me a little less, for some reason. I might, on occasion, even be interested enough to click on one there. I’m at a loss to explain why they bother me so much on one platform and not the other.

Of course I laughed a little at next article—the FTC policy (rather new!) about deceptive native ads. It’s comforting, I guess, that as the world and its media expand and adapt, the FTC is at its heels, mostly, making sure we don’t get taken advantage of.  Something did come to mind, though. How do we factor those pesky 30-second-or-more-long ads we occasionally can’t opt out of before a YouTube video, or ads at the beginning on an online news report? I feel like I should always have the choice to opt out. I figure they are the price I have to pay (ha) to watch the content. Those aren’t deceptive, per say, but they seem unfair, and I feel like I should have a choice.

In “Think you’re reading the news for free? New research shows you’re likely paying with your privacy,” the authors explained that browsing news-related sites exposes consumers to being tracked, often more frequently than on other places they visit online. Something the authors brought up really got to me: that ad blockers might be seen as a hindrance to someone’s business model. Meaning, I’m on a business’ site, so I ought to pay with my privacy for their content. Uh…NO? If you want to me to pay you with/for something, how about go ahead and charge me? Let’s be honest here! Back to the topic of tracking, I’m going to leave this right here:
“It should come as no surprise that this practice, as it becomes better understood, doesn’t sit well with the public.

Extensive survey research has shown that users are opposed to such invasions of their privacy. At the same time, they feel like there’s nothing they can do to protect themselves.”

The Advertising Age article about Facebook made me wonder: why does everybody want to know where I am, all the time? That was sort of the appeal of growing up, right? Knowing that one day I wouldn’t have to explain my whereabouts, without someone (hi, mom) always needing to track my moves. It’s MY privacy, and it’s my right to NOT share information. I don’t remember anyone ever asking me if it was okay. Instead the burden is on me to dig deep into Facebook’s privacy settings to figure out a way to opt out. In the end, I think it’s all about the money. Facebook was, at first, this outlet that was famous for being private about its data. Now it sells the details to those willing to shell out the cash. Troubling.


The final Pew Research article, “Digital News—Revenue Fact Sheet,” had me wondering: digital ads seem to be something advertisers are spending huge bucks on, but who’s watching? (Not me!) How do advertisers qualify them as a success? Is it simply a click, a certain amount of time spent on an ad? And am I alone in finding these ads more annoying with each passing day?

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